40% increase in PSO Levy in electricity bill

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NY_Resident

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hi guys

Is the energy regulator for real?? They are proposing that all domestic electricity bills will now have an annual PSO Levy of 112 euro, an increase of 30 euro. I know Renewable energy is important, but are we going to be subsidising an uneconomic energy form forever?? 500m of a Levy of which 400m is going to wind developers? This is bigger than water charges!!!!!

Thanks,
 
Renewable energy isn't important, it is an imperative. And it is as economical as buying in fossil fuels from faraway lands - coal is cheap but I doubt there's anyone (barring the Orange Ogre) looking to get back into it. If we're to meet the COP21 commitments then no new oil/gas reserves can be tapped so we need to get into renewables ASAP, whatever steps are necessary.
 
We have one of the best wind profiles in western europe for wind energy... it's not clear to me why it needs this level of subsidy levied in this regressive manner.

It's not as if the levy itself in any way encourages consumers to use renewable rather than consumable energy.
Why not pass a law obliging energy companies to source X of their needs from renewable sources, even if that means unit prices will be higher... that way energy companies have an incentive to find efficient renewable sources?
Or, fund this from general taxation?
 
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Rob -- if it's as economical and cheap as coal, then why are we subsidising so heavily? There is a massive flow of capital into wind projects; surely we could better balance the level of subsidisation and still maintain the required level of private investment to achieve renewable targets? Apparently there is now a gold rush taking place in anticipation of solar pv subsidies coming down the tracks! Can't wait for this to hit my electricity bill
 
NY_Resident said:
hi guys

Is the energy regulator for real?? They are proposing that all domestic electricity bills will now have an annual PSO Levy of 112 euro, an increase of 30 euro. I know Renewable energy is important, but are we going to be subsidising an uneconomic energy form forever?? 500m of a Levy of which 400m is going to wind developers? This is bigger than water charges!!!!!

Thanks,
Click to expand...
Always beware of figures quoted by interested groups - usually they are wildly wrong.

Furthermore, avoid believing reports in newspapers such as the daily mail and independent - usually they are sensationalist and widely inaccurate or use words such as "up to" , "could", and their favourite "in certain circumstances"

I don't know much about energy, but I do know that the majority of subsidies are for non wind power especially peat.

Pso levy was always set to increase as laid out about 5 years ago. Its expected to be about €200 by 2020
 
Where is the incentive for households to reduce their energy use?

If the PSO was levied on the kWh used, then maybe there is a point in subsidising renewable producers, but as it stands, its just a tax to redistribute income from households and businesses to wind farms and peat burners
 
It would be nice if rises in any tax, levy, etc, matched Inflation, CPI, .................... we are getting poorer slowly :eek:
 
isn't the idea that as more wind power comes on stream the unit rates should decrease; as the marginal cost once the turbines are operational is 0.
 
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